(BPT) - Time is money, and there’s a premium: Americans say their time is worth $240 per hour, on average, according to new research from Empower, a financial services company. Based on a standard 40-hour week, that puts the perceived value at $499,200 per year — nearly eight times higher than the average U.S. salary of $59,384.1 One third of people set the price at under $50 per hour, though 1 in 4 Millennials value their time at over $500 per hour — the highest of any generation (just 6% of Boomers name that rate).
Many Americans are racing against the clock when it comes to financial goals: half think they’re running out of time to save for retirement, even though 44% say they started putting money away early enough. Another 43% wish they could go back in time to start saving sooner, and half (48%) would rather have a longer retirement period with less money, than retire later in life with more.
People may be further along than they think. According to Empower Personal Dashboard™ data, the average 401(k) balance clocks in at $291,810 and for people in their 50s approaching retirement age, the number jumps to $580,2592 — one key measure of overall personal savings and investments.
Additional key findings:
Sign of the times
Americans are having to work alongside the wider economy on their journey to hit their goals. Though 30% of adults are not keeping track of any financial “signs of the times,” around a quarter are keeping an eye on shrinkflation (24%), as product sizes get smaller for the same or more cost. It can be a struggle, as more than 3 in 4 Americans believe they’re doing as much as they can to save money while shopping (76%). Some 22% of Americans are also keeping track of their ability to retire and when (22%), as nearly half (48%) worry about how they’ll pay for expenses once they’re no longer working.
Americans are watching the strength of the job market (21%), and cryptocurrency (19%). The same amount are keeping an eye on volatility in the stock market. Compounding gains can play an essential role in building wealth and 3 in 10 people say they would have invested in a popular stock if they could go back in time.
The time is now
Time is of the essence as people work toward streamlining their lives and focusing on what matters most to them, amid commitments across work and home that can affect their financial happiness. More than half of Millennials (52%) and 37% overall think saving time is more important than saving money.
For many, getting advice early on is key: nearly 1 in 5 would have worked with a financial professional sooner. Overall, Americans remain optimistic, with 78% saying it’s never too late to start focusing on your finances.
Methodology
Empower commissioned the “Time is Money” survey, which is based on online survey responses from 2,204 Americans ages 18+ and fielded by Morning Consult from March 11-14, 2024.
1 U.S. Bureau of Labor Statistics Dec 2023. Quarterly Census of Employment and Wages.
2 Anonymized user data from the Empower Personal Dashboard™ as of March 2024.
RO3510881-0424